Since the global financial crisis, operational risk failures globally have cost the financial services sector more than US$145.8bn. While the industry has recognized that operational risk is broken, attempts to fix it have tended to take a conservative approach, recruiting risk officers from within the industry, and the impact on operational risk culture has been limited.

Sharply rising demand for compliance talent, the absence of a clear career path in the discipline, and greater need for compliance executives with leadership and influencing skills are creating difficult challenges for organizations seeking to identify and retain talent in a world of increasing regulation.

As the risk function has shifted from a largely back-office operation with little influence to be more strategic, regulatory agencies are insisting that these functions be structurally independent and staffed with strong talent.